Putting a Pay Day Loan into Bankruptcy.

As the economy continues to sputter and money remains tight for everyone, even creditors seem to be feeling the pinch.  Some of these creditors who are short of cash are resorting to lying about whether the debt you owe them can be put into bankruptcy.  Pay day lenders seem to be the main culprit in this area.  When my clients tell a pay day lender who keeps calling to collect that they are going to file bankruptcy, the pay day loan rep will say, "You can't put our loan in bankruptcy!"  Some pay day lenders will even make you sign a document when you get the loan where you promise not to put that loan in bankruptcy.  Don't worry about those tactics.  It's not true; it's just a ruse designed to get you to pay them.  Pay day loans, like medical bills and credit cards, are all considered unsecured debts that are easily discharged in a bankruptcy.    The only exception would be if you obtained the pay day loan during the period of time right before you filed bankruptcy.  If that's the case, talk to your lawyer about whether your pay day loan can be discharged in your bankruptcy.